Since when has a flying club been a democracy?
Don't try and equate society with a flying school, it just isn't the same.
If you don't want to enforce standards in your club, then that's up to you, but if you are happy with shoddy flying and dangerous pilots. Go ahead.
Whilst I don't like the police analogy, if FI's and examiners don't work together to "police" things, then who will?
Someone has to set the acceptable standard. Who better to do it than the people who's job it is to train and examine?
So if someone you trained or "signed off" went and killed themselves. You wouldn't feel the slightest bit of responsibility?